Nordstrom Inc (JWN)
Interest coverage
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 494,000 | 468,000 | 630,000 | -688,000 | -565,000 | -1,946,000 | -1,999,000 | -1,130,000 | -1,491,000 | -139,000 | -144,000 | 118,000 | 380,000 | 395,000 | 410,000 | 480,000 | 777,000 | 874,000 | 799,000 | 853,000 |
| Interest expense (ttm) | US$ in thousands | 221,000 | 225,000 | 112,000 | 103,000 | 100,000 | 100,000 | 100,000 | 104,000 | 108,000 | 119,000 | 120,000 | 124,000 | 128,000 | 125,000 | 132,000 | 135,000 | 136,000 | 135,000 | 137,000 | 138,000 |
| Interest coverage | 2.24 | 2.08 | 5.62 | -6.68 | -5.65 | -19.46 | -19.99 | -10.87 | -13.81 | -1.17 | -1.20 | 0.95 | 2.97 | 3.16 | 3.11 | 3.56 | 5.71 | 6.47 | 5.83 | 6.18 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $494,000K ÷ $221,000K
= 2.24
The interest coverage ratio for Nordstrom Inc has exhibited fluctuations over the periods reported. From January 31, 2022, to July 31, 2022, the interest coverage ratio ranged from 5.71 to 6.47, indicating the company's strong ability to cover its interest expenses. However, from October 29, 2022, to January 31, 2023, there was a noticeable decline in the ratio, dropping to as low as 2.97. This downward trend continued into the following periods, with ratios of 0.95 and -1.20 reported for April 29, 2023, and April 30, 2023, respectively.
From July 31, 2023, to October 31, 2023, the interest coverage ratio further deteriorated, reaching as low as -19.99, signaling a significant strain on Nordstrom's ability to cover its interest obligations. Subsequently, there was a slight improvement in the ratio for January 31, 2024, although it remained negative at -19.46. The ratio continued to fluctuate but showed signs of recovery in the subsequent periods.
Given the recent positive ratios reported for July 31, 2024, and October 31, 2024, at 5.62 and 2.08 respectively, it appears that Nordstrom Inc is working towards improving its interest coverage position. These positive ratios suggest a better ability to service its interest payments during those periods. However, it is important for stakeholders to closely monitor Nordstrom's interest coverage ratio in upcoming periods to ensure sustained improvement and financial stability.
Peer comparison
Jan 31, 2025